The Ministry of Employment and Labor will begin disclosing "hidden wage arrears" that were previously unreported in official statistics starting this year. The ministry determined it must identify and prevent wage theft victims even if the disclosure draws criticism that arrears have increased.
The ministry announced the wage arrears statistics improvement plan on the 3rd. Wage arrears exceeded 2 trillion won for two consecutive years in 2024 and last year. The ministry plans to develop arrears reduction policies by improving the statistics.
Starting next month, the ministry will expand wage arrears statistics from three categories (total amount, cleared amount, number of victims) to 11 categories. Detailed information including wage arrears rate, arrears rate per 10,000 workers, and case processing results will be publicly disclosed for the first time.
Identifying the causes of wage arrears will become easier. The ministry plans to subdivide the analysis criteria for arrears causes, previously limited to six categories including temporary business deterioration and business closure. For example, business deterioration will be classified by whether it stems from temporary economic impact, unpaid receivables, or low-bid contracts, with results analyzed and reflected in policy.
Notably, the ministry will disclose "hidden wage arrears" every half-year. Current wage arrears are calculated based on cases reported to regional employment and labor offices nationwide. Cases not reported are not reflected in arrears statistics. The ministry decided to announce arrears confirmed through workplace inspections and comprehensive victim surveys alongside existing statistics semi-annually.
The ministry is prepared to accept that the "hidden wage arrears" disclosure may increase the reported scale of arrears. To halve annual arrears during the Lee Jae-myung administration, the ministry determined it must accurately identify unreported arrears in the field and support victims.
Labor Minister Kim Young-hoon said, "The government will properly analyze the causes of wage arrears from the start to formulate accurate policies," adding, "We will proactively find and assist hidden arrears victims."